Do what you do best, and outsource the rest
Peter Drucker
Business owners know that handling money has become more complicated over the years. Keeping accurate records has become critical in the successful financial management of businesses. As accurate record keeping is also required by law, the practice of bookkeeping is an essential and significant part of a business’s operations and success.
Some have described bookkeepers as ‘poor relations’ to accountants. Nothing could be further from the truth. Bookkeeping and accounting practices provide complementary services. Many bookkeepers also have the same undergraduate qualifications as accountants but aren’t keen to specialise. Working in the field of bookkeeping provides the variety they desire to keep work interesting.
Bookkeeping is the first step in the accounting process, as it involves the tracking and maintenance of your business’s financial transactions and provides the information from which your financial accounts are prepared.
Bookkeepers bring to the table enormous attention to detail, accuracy and organisation. A bookkeeper will work alongside you to develop an annual budget. In line with regular reporting, a bookkeeper will keep you and your business financially up to date. Admittedly, it’s not for everyone. But if you want your finances organised and regular reports that reveal your business’s actual financial position versus budgeted figures, then your investment in an experienced and trusted bookkeeper will pay enormous dividends for yourself and your business.
Whilst the suite of services provided varies between each business and its bookkeeper, a good bookkeeper will ensure your daily transactions are reconciled, suppliers reimbursed, and staff and entitlements paid. They will provide you with monthly statements and reports so you know how exactly how your business is tracking. Their services are designed to save your business money. Your accountant will be quicker, too, since all the information has already been accurately documented by your trusty bookkeeper.
When looking for a bookkeeper, ensure that they are qualified, experienced and a registered BAS agent. Look for testimonials and act on ‘word of mouth’ referrals.